When the Automobile Replaced Horse-Drawn Carriages as the Principal Means

question 70

Multiple Choice

When the automobile replaced horse-drawn carriages as the principal means of transportation,firms producing horse-drawn carriages went bankrupt and permanently laid off all their workers,thereby increasing i.seasonal unemployment.
Ii) structural unemployment.
Iii) cyclical unemployment.

• A)i only
• B)ii only
• C)i and ii
• D)ii and iii
• E)i and iii

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Definitions:

Direct Materials Price Variance

This refers to the difference between the actual cost of direct materials and the standard cost that was expected or budgeted for those materials.

Standard Price

The predetermined cost that a company expects to pay for various materials, labor, or overhead used in their products or services.

Actual Price

The amount of money exchanged for a good or service in a real-world transaction.

Standard Costs

Predetermined costs calculated for direct materials, labor, and overhead, used as a benchmark to measure performance.